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Targeted Return

Investment objective

To achieve a return (net of tax and investment expenses) that exceeds the increase in the CPI by at least 3% p.a. over rolling 5-year periods.

Investment strategy

To invest in a portfolio of highly diversified assets which aim to provide strong above-inflation returns with low levels of volatility.

Strategic asset allocation

Asset class

As of 1 October 2019%

Range%

Australian shares

11.1

0 - 33

Alternatives

55.6

11 - 90

Infrastructure

11.1

0 - 33

Fixed interest

22.2

10 - 60

Criterion

Metric

Suggested minimum investment time frame

4 years

Expected frequency of neg. annual returns in any 20-year period

Approx. 2.5

Risk band**

4

Risk label**

Medium

Investment fee#

0.19% p.a.(0.23% p.a. gross of tax)

Indirect cost ratio^

0.53% p.a.

*The risk label and band is based upon each investment option’s assumed number of negative returns over a 20-year period and grades these investment options across seven risk labels, from ‘Very low’ (risk band 1) to ‘Very high’ (risk band 7).

#TInvestment fees are deducted from the investment earnings of the Fund, not from your account balance. These fees cover investment management, asset custody, and other related costs. The investment fees are regularly reviewed and may change from time to time.

^The indirect cost ratio (ICR) represents estimated costs incurred by the Fund’s investment managers before investment earnings are received. These costs take into account the Fund’s experience in the last financial year and are not deducted from your account or from the Fund’s assets. They include estimated transactional and operational costs (as detailed in our Fees and Costs booklet) and performance-related fees.